Oliver says sanctions against Russia have indirect impact on Canada

Canada is experiencing indirect economic fallout from the sanctions it and other countries have imposed against Russia, federal Finance Minister Joe Oliver acknowledged Tuesday.

Western European countries that do business with Canada are feeling the negative impact of economic sanctions, which have also been imposed by the U.S. and Europe, Oliver said.

That, in turn, reaches across the Atlantic because when growth in Europe slows, it also affects Canadian trade.

“I think most European countries would acknowledge there has been some economic impact on Europe from these sanctions,” Oliver said after a committee hearing.

“The impact is a little more indirect, but when you have the largest economy in the world — $17 trillion in GDP — growing more slowly, then it affects our trade and we trade with all the European countries and, of course, we’re finalizing (the Canada-European Union trade deal).”

The federal government has imposed sanctions against Russian individuals and companies in response to the situation in eastern Ukraine and Russia’s annexation of Crimea.

Despite the economic impact on Canada, Oliver said he continues to support the use of sanctions in Russia.

“Oh yeah, absolutely, do not misinterpret for one second,” he said. “I’m just saying there’s a reality.”